- MCME Carell acquires City Office REIT for $1B, including assumed debt and sale of Phoenix assets.
- The deal values City Office REIT at a 26% premium to its pre-announcement NYSE share price.
- City Office REIT held 5.4M SF of office space, focused on Sun Belt markets.
- Joint venture partners previously acquired 701 Brickell in Miami for $443M in 2024.
Deal Details and Shareholder Approval
According to the Commercial Property Executive, MCME Carell, a partnership between Elliott Investment Management and Morning Calm Management, has completed the $1B purchase of City Office REIT. The trust traded at $7 per share, with the transaction including assumption or repayment of debt and the sale of City Office’s Phoenix portfolio. Over 98% of voting stockholders approved the acquisition, making it a decisive move in the office investment sector.
Premium Valuation and Advisory Teams
The acquisition price reflects a 26% premium to the REIT’s NYSE closing share price before the July announcement. It also marks a 39% premium to the 90-day average. Raymond James & Associates and JLL Securities served as exclusive financial advisors to City Office. Legal counsel was provided by DLA Piper and Hogan Lovells US. MCME Carell was represented by Eastdil Secured and Gibson Dunn & Crutcher.
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Focus on Sun Belt Offices
City Office REIT’s portfolio is centered on Sun Belt markets, controlling 5.4M SF of office space. The deal further builds MCME Carell’s office investment presence in the region. The joint venture partners have demonstrated recent activity, notably acquiring the 685 KSF office tower 701 Brickell in Miami for $443M in 2024. This latest acquisition comes amid broader momentum in the region, where strong demographic and employment trends continue to bolster office market fundamentals. Elliott managed $76.1B in assets as of June, while Morning Calm held 11M SF of commercial property.
What’s Next
With this office investment, MCME Carell is positioned for further growth in key US markets. Watch for ongoing consolidation and premium deals as investors seek scale and yield in the Sun Belt’s office space sector.
